The majority of advisers have no interest in selling their firm to a large consolidator, research shows.
Figures from a survey of around 200 advisers by platform Nucleus found just 4 per cent would sell up to a large consolidator, down from 13 per cent last year.
Of those looking to sell, being bought by another advisory firm was the preferred route for nearly half of respondents.
The research shows 35 per cent of advisers are looking to offload their business in the next five years while 30 per cent have no plans to sell.
Nucleus chief customer officer Barry Neilson says advisers are “put off” from stories of acquisitions that have gone wrong and fear damaging client relationships.
He says: “Some advisers also fear the years of trust and loyalty built with these clients could be eroded quickly be a sale to a large consolidator and many are discovering that a sale to a like-minded firm is the most likely way to ensure a consistent experience for clients.”
The survey also showed there has been a 17 per cent increase in the amount of business owners with a succession plan.
Just 10 per cent say retirement is an immediate concern or challenge.
Neilson says: “Succession planning and M&A activity is something every advice firm needs to consider [and] the challenge of succession is to ensure a smooth transition for staff and clients, minimising disruption and risk.”